7 Money Lessons Every 30-Something Should Know

So, you have gotten to your 30s - a great time to start making good decisions for setting up the life you want. While your 20s is all about experimenting, me first, and good times, your 30s should be about starting to set yourself up in a life that you want - whatever that is.

So, if you are in your 30s, here’s a checklist of the top 7 things you should know about money to get ahead.

1. You need to think long term about money.

By that I mean really THINK about where you are spending it. Sure, that new car is enticing, and you are so sick of your old one, but long term, where does that purchase put you and your money? If you are buying something because you want it NOW, try and think of how you will use it over the long term. If you can’t see it adding value in five years to your life, chances are you don’t need it.

Get ahead in your career with these top tips from 'Will and Grace's Karen1:12

Funny work related tips from Karen of Will and Grace fame.

February 23rd 2017

2 years ago

/display/whimn.com.au/Web/Live/

2. Start separating your money when you get paid.

I like to think it’s paying yourself first. Each month, put a percentage of your pay put into a high interest account that you can’t touch. An old rule of thumb is to save 10% of everything you earn, but depending on your circumstance, you may be able to save more. This will be your rainy-day fund, and you simply most not touch it. Believe me, you will love the sleep at night feeling savings give you. If you can set a target of saving 3-6 months of living expenses saved up, you will know you have choices, and can weather any storm life throws at you.

3. Pay attention to your super.

Most of us don’t know even what their balance is, or what fund it is in. In time, your super will most likely become your most important asset outside of a home or business you may own. It pays to make sure you know about it. What fees you are paying, and perhaps even contributing a little more from your pay. The power of compounding interest means the earlier you start, the easier it becomes to build a large lump sum. Because chances are, when you are ready to retire, there will be no government pension system to support you. We are all living longer, and need to think earlier about what it will look like.

Vanessa is the author of 'The Breakfast Club for 40 Somethings’. Photo: SuppliedSource:Whimn

4. Start thinking about insuring yourself.

Do you have anyone that depends on you to earn money? A spouse or a child? If you don’t insure yourself, you have no peace of mind that if the worst happens, everyone else will be ok. Also think about insuring your ability to earn money - income protection. If you do get sick, you want to focus on getting better, not on how to pay the bills. You can either talk to your super fund about their insurance options, or ask a qualified financial adviser to find the right insurance for you.

5. Understand credit cards are evil.

I mean it. Sure, they have their purpose to pay for things quickly, and earn reward points; as long as you are paying them back every month. If you are spending money on credit, with no plan or ability to pay it back at the end of the month, then you are going to be paying more for every single thing you buy. In some cases, a lot more. Chances are, if you are buying an item on credit card without the cash for payback, you can’t afford it. Accept this and find another way to get money. Credit debt is a rock on your back that weighs you down.

'The Breakfast Club for 40 Somethings’ is a fictional story of people in their 40s realising the power of money and decision making to set them up in life. Photo: SuppliedSource:Whimn

6. Have a goal for you and your money.

Whether it be to buy your dream house or apartment, or to travel the world, you need to really think about what you want your life to be like, and work your way back from that. You can then start to think about how to manage your money to save for that goal. I have found having a financial adviser has been a big advantage for me, to help me build a plan and stick to it. Reaching your goals is important and rewarding.

7. Make hay while the sun shines, meaning; hustle with money as hard as you can in your 30s.

It becomes harder energetically to hustle the older you get, so if you can get yourself a side hustle to help you grow your money, do it. Whether it be driving an uber, or signing up to Airtasker, the more money you can bring in, the more choices you ultimately have.

While money can’t buy you happiness, it sure can be miserable without it. Being smart with your money in your 30s can set you up for the life you want in the future. So, some sacrifice is definitely worth it.

Vanessa has over two decades of experience in wealth creation. Photo: SuppliedSource:Whimn

Vanessa Stoykov is a financial storyteller and educator. Her new novel, The Breakfast Club for 40 Somethingsis a fictional story of people in their 40s realising the power of money and decision making to set them up in life.

Her website, VanessaStoykov.com has tips and a free quiz to see where you need to unlearn limiting money habits.